{"id":8968,"date":"2010-04-30T15:28:56","date_gmt":"2010-04-30T19:28:56","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=8968"},"modified":"2010-04-30T15:28:56","modified_gmt":"2010-04-30T19:28:56","slug":"forex-daily-market-commentary-52","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/04\/30\/forex-daily-market-commentary-52\/","title":{"rendered":"Forex Daily Market Commentary"},"content":{"rendered":"

By GCI Forex Research<\/strong><\/p>\n

Fundamental Outlook at 1400 GMT (EDT + 0400)<\/strong><\/p>\n

\u20ac<\/strong><\/p>\n

The euro appreciated \t\t\tsharply vis-\u00e0-vis the U.S. dollar today<\/span><\/strong> as \t\t\tthe single currency tested offers around the US$ 1.3340 level and \t\t\twas supported around the $1.3225 level. Risk appetite returned today \t\t\twith traders speculating German politicians will approve a financial \t\t\trescue package for Greece, a country that will need an estimated \t\t\t\u20ac120 billion over the next three years.\u00a0 Dealers also moved into \t\t\thigher-yielding assets following strong quarterly corporate earnings \t\t\treports.\u00a0 Many data were released in the U.S. today.\u00a0 First, Q1 \t\t\tgross domestic product growth came in at an annualized +3.2%, down \t\t\tfrom the prior reading of +5.6%.\u00a0 Second, the April Chicago \t\t\tpurchasing manager index improved to 63.8 from the prior reading of \t\t\t58.8.\u00a0 Third, final April University of Michigan consumer sentiment \t\t\tprinted at 72.2, up from the prior reading of 69.5.\u00a0 Notably, \t\t\tpersonal consumption expanded 3.6%, up from the prior reading of \t\t\t1.6%.\u00a0 Economists are still talking about the Obama administration\u2019s \t\t\tdecision to nominate three apparent monetary doves to the Federal \t\t\tReserve Board and its impact on policy and the U.S. dollar.\u00a0 In \t\t\teurozone news<\/strong>, EMU-16 April consumer price inflation printed at \t\t\t1.5% y\/y while the March EMU-16 unemployment rate printed at 10.0%.\u00a0 \t\t\tAlso, French March consumer prices were up 0.6% m\/m and 2.0% y\/y.\u00a0 \t\t\tEurozone finance ministers are likely to convene on Sunday to \t\t\tdiscuss Greece\u2019s situation.\u00a0 Euro bids are cited around the US$ \t\t\t1.3175 level.<\/span><\/p>\n

\u00a5\/ CNY<\/span><\/strong><\/p>\n

The yen depreciated vis-\u00e0-vis the U.S. dollar today<\/span><\/strong> as the greenback tested offers around the \u00a5<\/a>94.60 \t\t\tlevel and was supported around the \u00a593.90 level. \u00a0Bank of Japan kept \t\t\tmonetary policy unchanged overnight and reported it will help \t\t\tlenders provide credit, possibly using methods from 1998-1999 when \t\t\tlenders gave cash to lenders to address the credit squeeze.\u00a0 The \t\t\theadline overnight unsecured call rate target remains at 0.1%. BoJ \t\t\tGovernor Shirakawa directed the central bank to stimulate lending \t\t\t\u201cwith a view to strengthening the foundations for economic growth.\u201d \t\t\tHe added \u201cThe government is also trying to map out an economic \t\t\tgrowth strategy, and the Bank of Japan hopes to give a boost to such \t\t\tefforts with new policy measures.\u201d Many data were released in Japan \t\t\tovernight.\u00a0 First, April manufacturing PMI improved to 53.5 from \t\t\t52.4.\u00a0 Second, March overall household spending grew 4.4% y\/y, up \t\t\tfrom the prior reading of 0.5% y\/y.\u00a0 Third, the March jobless rate \t\t\tticked higher to 5.0% from the prior reading of 4.9%.\u00a0 Fourth, April \t\t\tTokyo-area consumer price inflation was off 1.5% y\/y at the headline \t\t\tlevel, up from the revised prior reading of -1.7%.\u00a0 The April \t\t\tex-food and energy component was off 1.4%, lower than the prior \t\t\treading of -1.2%.\u00a0 Fifth, March national consumer price inflation \t\t\twas off 1.1% y\/y at the headline and ex-food and energy levels.\u00a0 \t\t\tSixth, March industrial production was up 0.3% m\/m and 30.7% y\/y.\u00a0 \t\t\tSeventh, March labour cash earnings were up 0.8% y\/y, up from the \t\t\tprior reading of -0.7% y\/y. Eighth, March housing starts improved to \t\t\t-2.4% y\/y with annualized housing starts printing at 854,000.\u00a0 \t\t\tNinth, March construction orders were up 42.3% y\/y. \u00a0Collectively, \t\t\ttoday\u2019s data evidence an improving economy that is mired in a \t\t\tdeflationary spiral and the central bank\u2019s enhanced rhetoric today \t\t\treflects that dichotomy.\u00a0 The new forecast for inflation suggests \t\t\tdeflation will end during the next fiscal year with CPI at +0.1%.\u00a0 \t\t\tThe Nikkei 225 stock index climbed 1.21% to close at \u00a511,057.40.\u00a0 \t\t\tU.S. dollar offers are cited around the \u00a596.85 level.\u00a0 The euro \t\t\tmoved higher <\/strong>vis-\u00e0-vis the yen as the single currency tested \t\t\toffers around the \u00a5125.95 level and was supported around the \u00a5124.30 \t\t\tlevel.\u00a0 The British pound moved higher <\/strong>vis-\u00e0-vis the yen as \t\t\tsterling tested offers around the \u00a5145.20 level while the Swiss \t\t\tfranc moved higher <\/strong>vis-\u00e0-vis the yen and tested offers around \t\t\tthe \u00a587.85 level. In Chinese news<\/strong>, the U.S. dollar \t\t\tdepreciated vis-\u00e0-vis the Chinese yuan as the greenback closed at \t\t\tCNY 6.8253 in the over-the-counter market, down from CNY 6.8260. \t\t\t\u00a0China yesterday reduced its quota for short-term overseas borrowing \t\t\tthis year to US$ 32.4 billion, 1.5% less than last year\u2019s pace on \t\t\taccount of yuan appreciation.\u00a0 People\u2019s Bank of China is expected to \t\t\trevalue its yuan currency at any time.\u00a0 Data to be released in China \t\t\ttonight include April PMI manufacturing.<\/span><\/p>\n

\u00a3<\/span><\/strong><\/p>\n

The British pound \t\t\tdepreciated vis-\u00e0-vis the U.S. dollar today<\/span><\/strong> as cable tested bids around the US$ 1.5280 level and was capped \t\t\taround the $1.5390 level.\u00a0 Data released in the U.K. today saw April \t\t\tGfK consumer confidence worsen to -16 from the prior reading of \t\t\t-15.\u00a0 The Tories\u2019 candidate, David Cameron, won yesterday\u2019s final \t\t\tdebate against Liberal Democratic candidate Clegg and Labour\u2019s Prime \t\t\tMinister Brown.\u00a0 The General Election will take place on 6 May and \t\t\tCameron is expected to win but Parliament may be hung.\u00a0 Cable bids \t\t\tare cited around the US$ 1.5030 level.\u00a0 The euro depreciated <\/strong> vis-\u00e0-vis the British pound as the single currency tested bids \t\t\taround the \u00a30.8625 level and was capped around the \u00a30.8725 level.<\/span><\/p>\n

<\/span><\/p>\n

<\/span><\/p>\n

<\/span><\/p>\n

CHF<\/span><\/strong><\/p>\n

The Swiss franc \t\t\tappreciated <\/span><\/strong>vis-\u00e0-vis the U.S. dollar \t\t\ttoday as the greenback tested bids around the CHF 1.0745 level and \t\t\twas capped around the CHF 1.0845 level. \u00a0\u00a0Data released in \t\t\tSwitzerland today saw the April KOF Swiss leading indicator improve \t\t\tto 1.99 from the prior revised reading of 1.96.\u00a0 Swiss National Bank \t\t\tPresident Hildebrand said the SNB will continue to counter any \t\t\t\u201cexcessive\u201d gains of the franc, noting there would be a \u201cnegative \t\t\timpact\u201d if the franc appreciates \u201csharply due to its role as a safe \t\t\thaven currency.\u201d\u00a0 Hildebrand noted the SNB \u201cwill not allow such a \t\t\tdevelopment to turn into a new deflation hazard\u201d and is \u201cacting \t\t\tdecisively to prevent an excessive appreciation.\u201d\u00a0 Hildebrand also \t\t\tcalled on European leaders to conclude negotiations over Greece\u2019s \t\t\taid package \u201crapidly.\u201d U.S. dollar offers are cited around the CHF \t\t\t1.0930 level.\u00a0 The euro moved lower<\/strong> vis-\u00e0-vis the Swiss franc \t\t\tas the single currency tested bids around the CHF 1.4335 level while \t\t\tthe British pound depreciated<\/strong> vis-\u00e0-vis the Swiss franc and \t\t\ttested bids around the CHF 1.6435 level.<\/span><\/p>\n

Forex Daily Market Commentary<\/strong><\/em> provided by<\/em><\/strong> GCI Financial Ltd<\/strong><\/a>.<\/strong><\/p>\n

GCI Financial Ltd (\u201dGCI\u201d) is a regulated securities and commodities trading firm, specializing in online Foreign Exchange (\u201dForex\u201d) brokerage. GCI executes billions of dollars per month in foreign exchange transactions alone. In addition to Forex, GCI is a primary market maker in Contracts for Difference (\u201dCFDs\u201d) on shares, indices and futures, and offers one of the fastest growing online CFD trading services. GCI has over 10,000 clients worldwide, including individual traders, institutions, and money managers. GCI provides an advanced, secure, and comprehensive online trading system. Client funds are insured and held in a separate customer account. In addition, GCI Financial Ltd maintains Net Capital in excess of minimum regulatory requirements.<\/p>\n

DISCLAIMER: GCI\u2019s Daily Market Commentary is provided for informational purposes only. The information contained in these reports is gathered from reputable news sources and is not intended to be U.S.ed as investment advice. GCI assumes no responsibility or liability from gains or losses incurred by the information herein contained.<\/p>\n","protected":false},"excerpt":{"rendered":"

Risk appetite returned today with traders speculating German politicians will approve a financial rescue package for Greece, a country that will need an estimated \u20ac120…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-8968","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/8968","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=8968"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/8968\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=8968"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=8968"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=8968"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}